STANDARD BIDDING DOCUMENTS

Procurement of Goods
(up to Nu. 0.500 Million)

Royal Government of Bhutan

Ministry of Finance

2019
STANDARD BIDDING DOCUMENT

Procurement of Goods
(For value up to Nu. 0.500 million)

Royal Government of Bhutan

Ministry of Finance

2019

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 PREFACE
This Standard Bidding Document for the Procurement of Goods have been
prepared by the Ministry of Finance to be used for the Procurement of Goods
through National and International Competitive Bidding in projects that are
financed in whole or in part by the Royal Government of Bhutan (RGoB). It
should be used in conjunction with the Procurement Rules and Regulations
2019. This document will come into effect from 1st July, 2019.

For any comments or clarifications on this Standard Bidding Document contact:

Government Procurement and Property Management Division

Department of National Properties
Ministry of Finance
Royal Government of Bhutan

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 Request for Quotation for Supply of Goods

[Purchaser to describe here the nature of the Goods

and Contract Package Numbers as per the Procurement Plan]

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 [Purchaser to use normal Letter Headed format]
Date:

Invitation for Quotation (IFQ)

Project title: __________________

Source of Funding: _________________
Contract Ref: ______________________

To:
____________________________

____________________________

Dear Sir/ Madam,

1. You are invited to submit your priced bid for the supply of the following items:
i) _____________________________
ii) _____________________________
iii) ____________________________

[Information on technical specifications and required quantities are attached]

2. The bidder(s) may quote for any or all items under this invitation1. Each item shall be
evaluated and contract awarded separately to the firm(s) offering the lowest evaluated
price for each item
Or (use one and delete the other)
The bidder(s) must quote for all the items under this invitation. Price quotations
will be evaluated for all the items together and contract awarded to the firm
offering the lowest evaluated total cost of all the items.

3. The bidder(s) shall submit one original of the priced quotation with the Form of Bid and
clearly marked ORIGINAL. In addition, the bidder(s) should also submit one copy
marked as COPY. The quotation including all documents in the attached format should

1 The procuring agency shall specify the evaluation criteria and should use appropriately. It should be
clarified that whether the evaluation will be done item wise or as whole package.

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 be sealed in an envelope as required by PRR 2019 clause 5.1.7.2 and addressed to and
delivered at the following address [insert address of receipt of bids].
OR (use one of them)
The price quotation in the form attached may be submitted by facsimile or electronically
at the following address: [insert facsimile or email address]2.

Your quotation in the required format should be addressed and submitted to:

________________________________________

________________________________________

________________________________________

Telephone: ______________________________

Fax: ____________________________________

Email: __________________________________

4. The deadline for receipt of your quotation(s) by the purchaser at the indicated address
is_________________[insert date & time]

5. Bids must be accompanied by a bid securing declaration using the form 1.

i. The Bid Securing Declaration shall be valid for thirty (30) days beyond the bid validity
period. In exceptional circumstances, prior to the expiration of the Bid validity period,
the Employer may solicit the Bidder’s consent to an extension of the Bid validity
period. The request and responses shall be made in writing. The validity of Bid
Securing Declaration shall be suitably extended.

ii. Any bid not accompanied by a Bid-Securing Declara

iii. The Bid-Securing Declaration shall be executed:

a) If the Bidder withdraws the Bid after Bid opening during the period of Bid validity.
b) If the Bidder does not accept the correction of the Bid price as Clause per 7 (b) (iii);
c) In the case of a successful bidder, if the bidder fails within the specified time limit to
sign the Agreement; or furnish the required Performance Security.

2 This option is generally not encouraged which should be used only in urgent situation and before
initiating any procurement of this sort, the agency initiating this method should seek approval from the
concerned higher authority.

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 iv. In case Bid Securing Declaration is executed, the bidder shall deposit the bid
security of Nu. [insert the amount between range of 1-2% of the departmental
estimate to be forfeited] within 14 days from date of notification by Employer.
v. In case the bidder fails to comply 5 (iv), bidder shall be excluded from being eligible
for Bidding or submitting Bid in any tender with the Employer for a period of two
years.

6. Quotation by fax or by electronic means (are or are not) acceptable [delete whichever is
not applicable]
7. The quotation should be submitted as per the following instructions and in accordance
with the attached Contract. The attached Terms and Conditions of Supply is an integral
part of the Contract.
a) PRICE: all prices shall be quoted in Ngultrum. The quoted price shall be inclusive
of all related costs including taxes, duties and other levies to the final place of
delivery. The final place of delivery is _____________ (insert final place of
delivery)
b) EVALUATION OF QUOTATION: offers determined to be substantially responsive
to the technical specifications will be evaluated by comparison of their quoted
prices. In evaluating the quotations, the purchaser will determine for each
quotation the evaluated price by adjusting the priced quotation by making any
correction for any arithmetical errors as follows;
i. where there is a discrepancy between amounts in figures and in words,
the amount in words will govern;
ii. where there is discrepancy between the unit rate and the line item total
resulting from multiplying the unit rate by the quantity, the unit rate as
quoted shall govern unless in the opinion of the Employer there is an
obviously gross misplacement of the decimal point in the unit rate, in
which case the line item total as quoted shall govern, and the unit rate
shall be corrected.
iii. if the supplier refuses to accept the correction, this quotation will be
rejected and the bid security shall be forfeited.
c) AWARD OF PURCHASE ORDER: the award will be made to the bidder who is
offering the lowest evaluated price that meets the specifications. The successful
bidder will sign a contract as per attached form-2 of contract and terms and
conditions of supply.

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 d) VALIDITY OF THE OFFERS: your quotation(s) shall be valid for a period of
________________[insert validity period] from the deadline for receipt of
quotation(s).
8. Further information can be obtained from: [insert address for information here]
9. The [name of the Procuring agency] has a budget allocation for the purchase of Goods
and wishes to apply some of that allocation for the purchase of Goods for which this
Request for Quotation is issued.
10. Depending on the final requirement, the purchaser may increase or decrease the
quantities by fifteen percent (15%) of the purchase order.
11. The quotation(s) will be opened in the presence of bidders or their representatives who
choose to attend at the specified venue and time.
12. The Purchaser is not bound to accept the lowest bid and reserves the right to accept or
reject any or all the bids without assigning any reason whatsoever.
13. The bidder whose bid is accepted will be notified of the award of contract by the
Purchaser prior to expiration of the quotation validity period. The terms of the accepted
offer shall be incorporated in the supply order form- 5.
14. Normal commercial warranty/guarantee shall be applicable to the supplied goods.
15. Ten percent (10%) of the Contract Price shall be paid within thirty (30) days of signing of
the Contract, and upon submission of a claim and an advance payment guarantee form-
4 for the equivalent amount valid until the Goods are delivered and in the form provided
in the Bidding Documents.
16. Ninety percent (90%) of the Contract Price shall be paid to the Supplier within thirty (30)
days after the date of the acceptance certificate for the respective delivery issued by the
Purchaser. The ten (10) percent performance security shall be retained as security
deposit and paid at the end of the warranty period or after six (6) months whichever is
later after adjustment of dues if any.

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 Schedule of Items and Priced Quotation (bid form)
[Describe below the items, unit and quantity of the goods required].

Sl Item Description Unit Qty Unit Total

& Rate Amount
Details(minimum specifications of (Nu.) (Nu.)
goods to be supplied)
1
2
3
4
5
6
7
8
Sub-Total for Supply of Goods

Total Amount for Supply of Goods to Purchaser

(including all types of cost)

Goods to be supplied to [Destination of Goods]

Total Amount in [insert the Total Amount for Supply of Goods including all related costs].
Nu. (in words)
Delivery period Number of days from the date of issue of the Purchase Order by the
Purchaser
Warranty Provided Months from date of supply or commissioning of the Goods.

Supplier’s Official Stamp

Signature of Supplier

Name of Supplier

Date

[The Supplier may attach copies of relevant brochures/catalogue for the goods to be supplied,
which will give sufficient information to carry out effective evaluation]

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 Technical Specification of the Goods Required
Sl Item Specification
1

10

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The Supplier is required to mention make / model (as applicable) of the goods to be supplied
and must attach the appropriate original printed literature / brochures for the various items
listed.

Supplier’s Stamp

Signature of Supplier

Name of Supplier

Date

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Documents required to be submitted as part of the Quotation

The original and copy (ies) of quotation submitted by the supplier shall comprise the
following:

(a) A duly completed and signed priced quotation as per the Schedule of Items and
the Priced Quotation.
(b) A valid Trade License3;
(c) A valid Tax Clearance Certificate;
(d) Bid- securing declaration
(e) Technical Specification of the Goods to be supplied; and
(f) Any other requirements specified in this document

Terms and Conditions for the Supply of Goods and Payment.

The Terms and Conditions hereinafter may only be varied with the written agreement of the
Purchaser and no terms and conditions put forward at any time by the Supplier shall form any
part of the Contract.

1. The Supplier shall be required to submit a performance security of 10% of the quoted
price in the form of cash warrant, demand draft or unconditional Bank Guarantee issued
by a financial institution located in Bhutan, which shall be furnished upon signing the
contract. Performance security shall be valid till the end of warranty period and will be
returned after the end of warranty period.
2. The supply of the goods shall be completed within [state number] days from the date of
issue of the Purchase Order, or the signing of the contract (if applicable);
3. Payment of the Invoice shall be arranged by the Purchaser, within thirty (30) days upon
submission of original Invoice and TPN number, against the actual supplied quantities of
goods as listed in the Purchase Order.
4. The quoted price shall include all taxes, duties, insurance and any other costs involved
and nothing extra shall be paid.
5. Any goods found defective during the warranty period shall be replaced/ repaired by the
supplier at his cost. If the supplier fails to rectify and or replace the defective goods, the
purchaser shall do it at the cost of the supplier.
6. The supplier shall pay liquidated damages at the rate of 0.1% per day for each day of
delay to a maximum of 10% of the quoted price.
7. The Purchaser may, by written notice, terminate the Purchase Order (or Contract if
applicable) in whole or in part at any time for its convenience:
a. if the Supplier fails to perform any other Terms and conditions specified with the
Purchase Order, or exceeds the maximum amount of liquidated damages.

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The non submission of historical (b & c) documents should not become rejection criteria and bidder should be
allowed to submit again.

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 b. if the Supplier fails to perform any other obligation(s) under the Purchase Order,
or
c. if the Supplier does not take any remedial action within a period of (7) seven
calendar days after receipt of a notice of default from the Purchaser specifying
the nature of the default(s), or
d. if the Supplier, in the judgment of the Purchaser, has engaged in any corrupt or
fraudulent practices in competing for or in executing the tasks under this
Purchase Order; and
8. The Supplier shall provide the warranty, as stipulated in the Quotation document, for the
goods to be supplied and confirm that if any faults are detected within the warranty
period in the supplied/installed goods, the Supplier shall be bound to rectify the fault or
replace the goods as the case may be. The security deposit shall be used to cover the
cost of supplies not delivered or defective items not replaced or rectified.
9. The purchaser may procure any of the items from the open market in case the supplier
fails to supply the goods within the stipulated time and realise the difference amount
between the quoted price & market price from the security deposit.

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 Form- 1
Bid-Securing Declaration

Date:

IFB No.:

To:

We, the undersigned, declare that:

We understand that, according to your conditions, Bids must be supported by a Bid-Securing

Declaration.
We accept that we are required to pay the bid security amount specified in the Bidding
Data Sheet within 14 days of your instruction and failure to do so will automatically
exclude us from being eligible for Bidding or submitting Bid in any contract with the
Employer for the period of two years if we are in breach of our obligation(s) under the Bid
conditions, because we:
(a) have withdrawn our Bid during the period of Bid validity specified by the Bidder in
the
Form of Bid; or
(b) having not accepted the correction of errors in accordance with the Instructions
to Bidders; or
(c) Having been notified of the acceptance of our Bid by the Employer during the
period of Bid validity, (i) fail or refuse to furnish the performance security or (ii)
fail or refuse to execute the Contract.

We understand this Bid-Securing Declaration shall expire if we are not the successful
Bidder, upon the earlier of (i) our receipt of your notification to us of the name of the
successful Bidder; or (ii) thirty(30) days after the expiration of our Bid.

Signed:

In the capacity of

Name:

Duly authorized to sign the Bid for and on behalf of:

Dated on day of Corporate Seal (where

appropriate)

Affix Legal Stamp

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 Form- 2

Performance Security

[The bank, as requested by the successful Bidder, shall fill in this form in accordance with the
instructions indicated]

Date: [insert date (as day, month, and year) of Bid submission]
IFB No. and title: [insert no. and title of bidding process]

Bank’s Branch or Office: [insert complete name of Guarantor]

Beneficiary: [insert complete name of Purchaser]
PERFORMANCE GUARANTEE No.: [insert Performance Guarantee number]
We have been informed that [insert complete name of Supplier] (hereinafter called "the
Supplier") has entered into Contract No. [insert number] dated [insert day and month], [insert
year] with you, for the supply of [description of Goods and related Services] (hereinafter called
"the Contract").
Furthermore, we understand that, according to the conditions of the Contract, a Performance
Guarantee is required.
At the request of the Supplier, we hereby irrevocably undertake to pay you any sum(s) not
exceeding [insert amount(s) in figures and words] upon receipt by us of your first demand in
writing declaring the Supplier to be in default under the Contract, without cavil or argument, or
you needing to prove or to show grounds or reasons for your demand or the sum specified
therein.
This Guarantee shall expire no later than the [insert number] day of [insert month] [insert year],
and any demand for payment under it must be received by us at this office on or before that
date. We agree to a one-time extension of this Guarantee for a period not to exceed [six
months] [one year], in response to the Purchaser’s written request for such extension, such
request to be presented to us before the expiry of the Guarantee.

[signatures of authorized representatives of the bank and the Supplier]

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 Form- 3
Contract Agreement

[The successful Bidder shall fill in this form in accordance with the instructions indicated]

THIS CONTRACT AGREEMENT made the [insert number] day of [insert month], [insert year],

BETWEEN

(1) [insert complete name of Purchaser], a [insert description of type of legal entity,
for example, an agency of the Ministry of .... of the Government of Bhutan, or
corporation incorporated under the laws of Bhutan] and having its principal place
of business at [insert address of Purchaser] (hereinafter called “the Purchaser”),
and

(2) [insert name of Supplier], a corporation incorporated under the laws of [insert:
country of Supplier] and having its principal place of business at [insert: address
of Supplier] (hereinafter called “the Supplier”).

WHEREAS the Purchaser invited Bids for certain Goods and ancillary services, viz., [insert brief
description of Goods and Services] and has accepted a Bid by the Supplier for the supply of
those Goods and Services in the sum of [insert Contract Price in words and figures, expressed
in the Contract currency/ies] (hereinafter called “the Contract Price”).

NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:

1. In this Agreement words and expressions shall have the same meanings as are
respectively assigned to them in the Conditions of Contract referred to.

2. The following documents shall constitute the Contract between the Purchaser and the
Supplier, and each shall be read and construed as an integral part of the Contract, viz.:

(a) This Contract Agreement;

(b) Terms and Conditions;
(c) Technical Requirements (including Schedule of Supply and Technical
Specifications);
(e) The Supplier’s Bid and original Price Schedules;
(f) The Purchaser’s Notification of Award of Contract;
(g) The form of Performance Security;
(h) The form of Bank Guarantee for Advance Payment;
(i) [insert here any other document(s) forming part of the Contract]

3. This Contract shall prevail over all other Contract documents. In the event of any
discrepancy or inconsistency within the Contract documents, then the documents shall
prevail in the order listed above.

4. In consideration of the payments to be made by the Purchaser to the Supplier as

hereinafter mentioned, the Supplier hereby covenants with the Purchaser to provide the
Goods and Services and to remedy defects therein in conformity in all respects with the
provisions of the Contract.

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 5. The Purchaser hereby covenants to pay the Supplier in consideration of the provision of
the Goods and Related Services and the remedying of defects therein, the Contract
Price or such other sum as may become payable under the provisions of the Contract at
the times and in the manner prescribed by the Contract.

IN WITNESS whereof the parties hereto have caused this Agreement to be executed in
accordance with the laws of Bhutan on the day, month and year indicated above.

For and on behalf of the Purchaser

Signed: [insert signature]

in the capacity of [insert title or other appropriate designation]

in the presence of [insert signature]

[insert identification of official witness]

For and on behalf of the Supplier

Signed: [insert signature of authorized representative(s) of the Supplier]

in the capacity of [insert title or other appropriate designation]

in the presence of [insert signature]

[insert identification of official witness]

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 Form- 4

Bank Guarantee for Advance Payment

[The bank, as requested by the successful Bidder, shall fill in this form in accordance with the
instructions indicated.]

Date: [insert date (as day, month, and year) of Bid submission]
IFB No. and title: [insert number and title of bidding process]

[bank’s letterhead]

Beneficiary: [insert legal name and address of Purchaser]

ADVANCE PAYMENT GUARANTEE No.: [insert Advance Payment Guarantee no.]

We, [insert legal name and address of bank], have been informed that [insert complete name
and address of Supplier] (hereinafter called "the Supplier") has entered into Contract No. [insert
number] dated [insert date of Contract] with you, for the supply of [insert types of Goods to be
delivered] (hereinafter called "the Contract").

Furthermore, we understand that, according to the conditions of the Contract, an advance

payment is to be made against an advance payment guarantee.

At the request of the Supplier, we hereby irrevocably undertake to pay you any sum or sums not
exceeding in total an amount of [insert amount(s) in figures and words] upon receipt by us of
your first demand in writing declaring that the Supplier is in breach of its obligation under the
Contract because the Supplier used the advance payment for purposes other than toward
delivery of the Goods.

It is a condition for any claim and payment under this Guarantee to be made that the advance
payment referred to above must have been received by the Supplier in its account [insert
number and domicile of the account]

This Guarantee shall remain valid and in full effect from the date of the advance payment
received by the Supplier under the Contract until [insert date4]. We agree to a one-time
extension of this Guarantee for a period not to exceed [six months][one year], in response to the
Purchaser’s written request for such extension, such request to be presented to us before the
expiry of the Guarantee.

_____________________
[signature(s) of authorized representative(s) of the bank]

4 Insert the Delivery date stipulated in the Contract Delivery Schedule. The Purchaser should note that in the event
of an extension of the time to perform the Contract, the Purchaser would need to request an extension of this
Guarantee from the bank. Such request must be in writing and must be made prior to the expiration date
established in the Guarantee

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 Form- 5
[Purchaser to use normal Letter Head format]

PURCHASE ORDER FOR THE SUPPLY OF GOODS

Purchase Order No: Purchase Order Date:

From: [Contact person,

[name and address of Purchaser] Telephone Number
Fax Number
e-mail address]

To: [Contact person,

[name and address of the Supplier] Telephone Number
Fax Number
e-mail address
supplier reference]

Delivery date: Order Value (Nu.):

Delivery terms:

The [insert name of procuring agency] has accepted your Quotation dated [insert date] for the
supply of Goods as listed below and request you to supply the goods within the delivery date
stated above, in the quantities and units and on these Terms and Conditions. For convenience a
copy of your signed quotation is attached.

ORDER ITEMS
Item Description Supplier Unit Qty Total
No Ref Price Price

In acceptance of this Purchase Order you are requested to sign below, at which time the
Contract shall become legally binding upon both parties. You are also requested to confirm that
you will be supplying the goods within the Delivery date mentioned above.

For the Purchaser: For the Supplier:

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Signature Signature

Print Name Print name

Designation Designation

Date Date

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